JAKARTA - Minister of Finance (Menkeu) Sri Mulyani said that until the end of 2021 the number of very underdeveloped villages in Indonesia was decreasing to 5,333 villages.

This figure is much reduced compared to the 2018 period when it was led by President Susilo Bambang Yudhoyono (SBY), which reached 14,074 villages categorized as very underdeveloped.

“The influence of the village fund budget on village progress and poverty alleviation is going well. We can explain that the government pays attention to progress and poverty alleviation in villages," he said in the DPR Plenary Session regarding the 2021 State Budget Accountability Bill on Tuesday, August 23.

Meanwhile, the Minister of Finance explained that if the villages left behind in 2021 were 15,935 villages. This level fell drastically compared to 2018 which was 33,339 villages.

"The decline in the number of villages with the status of being very underdeveloped and underdeveloped villages is proof of the positive impact of village funds for the progress of rural communities," he asserted.

To note, the realization of the transfer budget to the regions and village funds (TKDD) in 2021 will reach IDR 785.7 trillion or 98.8 percent of the provided APBN ceiling is absorbed.

The absorption of the realization of the TKDD budget was influenced, among others, by the additional allocation of underpayment of profit sharing funds (DBH), regional performance in meeting the requirements for channeling special transfer funds and the use of village funds for the provision of Village BLT.


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